Xero Limited (ASX: XRO) shares continued to climb higher on Friday, with the stock closing up 2.16% at $79.59 per share. After the late week surge, the company hit yet another 52-week high to close out the week.
So, what’s driving this WAAAX stock higher in 2019 and is there still time to buy?
Why Xero shares have been rocketing higher this year
Xero shares have been amongst the top performing of the ASX 200 in 2019, climbing more than 89% higher.
This also makes Xero the third-best WAAAX stock of this year behind Afterpay Touch Group Ltd (ASX: APT) and Appen Ltd (ASX: APX).
Afterpay and Appen have been rocketing higher in 2019 on the back of strong earnings and upgraded earnings guidance.
Xero shares have been rocketing higher in the last 6 weeks or so, after announcing it had signed its biggest client ever.
Xero signed top-10 accounting firm RSM Australia as a client, which could provide a significant boost to its revenue in FY20.
The Xero share price also rocketed to a new record high on the back of its half-year results on 6 November.
Xero reported net profit of NZ$1.3 million on revenue of NZ$338.7 million for the 6 months ending 30 September.
The Aussie accounting platform has over 2 million SME subscribers as its stratospheric growth continues into FY 2020.
The company is still pushing into the lucrative UK market as it looks to diversify its revenue streams beyond just its Australian and New Zealand roots.
Is there still value in Xero?
While Xero shares have been rocketing higher in 2019, they may not be the best WAAAX stock on the market.
Afterpay’s stellar growth run is continuing after a successful expansion into the UK and USA this year. The Afterpay share price has more than doubled, while Appen shares are up a tidy 90.63% in 2019.
I personally think the Aussie tech stocks could be overvalued at the moment, but they do seem to be climbing consistently higher.
The post Why Xero shares hit a new 52-week high last week appeared first on Motley Fool Australia.
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Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO. The Motley Fool Australia owns shares of Appen Ltd and Xero. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019